Ohio § 1109.24

§ 1109.24.

(A) Except as authorized by this section or section 1109.23 of the Revised Code , no state bank may extend credit in any manner to any of its own executive officers.  No executive officer of a state bank may become indebted to that bank except by

means of an extension of credit the bank is authorized by this section to make.  Any extension of credit made pursuant to this section shall be promptly reported

to the bank's board of directors and may be made only if all of the following apply: (1) The state bank would be authorized to make the extension of credit to other borrowers. (2) The extension of credit is on terms that are not more favorable than those afforded

to other non-executive borrowers. (3) The executive officer has submitted a detailed, current financial statement. (4) The extension of credit is made on the condition that it shall become due and payable

on demand of the state bank at any time when the executive officer is indebted to

any other bank or banks on account of extensions of credit of any one of the three

categories referred to in divisions (B), (C), and (D) of this section in an aggregate

amount greater than the amount of credit of the same category the state bank being

served as an executive officer could extend to the executive officer. (B) With the specific prior approval of its board of directors, a state bank may make

a loan to any of its executive officers if, at the time the loan is made, both of

the following apply: (1) The loan is secured by a first lien on a dwelling that is expected, after the loan

is made, to be owned by the executive officer and used as the executive officer's

residence. (2) No other loan by the bank to the executive officer under the authority of this division

is outstanding. (C) A state bank may make extensions of credit to any executive officer of the bank to

finance the education of the executive officer's children. (D) A state bank may make extensions of credit not otherwise specifically authorized

by this section to any of the bank's executive officers in an amount prescribed by

the superintendent of financial institutions. (E) Except to the extent permitted by division (D) of this section, a state bank may

not extend credit to a partnership in which one or more of the bank's executive officers

are partners having, individually or together, a majority interest.  For purposes of division (D) of this section, the full amount of the credit extended

shall be considered to have been extended to each executive officer of the bank who

is a member of the partnership. (F) This section does not prohibit any executive officer of a state bank from endorsing

or guaranteeing any loan or other asset previously acquired by the bank in good faith,

for the protection of the bank, or incurring any indebtedness to the bank for the

purpose of either protecting the bank against loss or giving financial assistance

to the bank. (G) Each state bank shall include with, but not as part of, each report of condition

made to the superintendent pursuant to section 1121.21 of the Revised Code , a report of all loans made under the authority of this section by the bank since

the bank's previous report of condition. (H) Each day any extension of credit in violation of this section exists is a continuation

of the violation for purposes of section 1121.35 of the Revised Code .